Monthly report · No.2
THURSDAY, MAY 30, 2024
the state of the market
The Housing Factor
By Ehsan Habib
Looking back at April of this year, we can clearly see that inventory is increasing in line with seasonal trends. Across the Inner East Bay* we saw 620 new listings enter the market - 31% Year - over - Year (YoY) increase from April 2023. Unfortunately for prospective home buyers, this increase in supply has not correlated with a decrease in prices. The median sale price of homes that sold in April was 11% higher than last year. The buyer demand keeping prices elevated is being tested by the high volume of new listings entering the market. This is especially true in Oakland; of the 724 Single-Family Homes that are currently for-sale in the Inner-East Bay, 476 (66%) of them are in Oakland.
THE TAKEAWAY
Real Estate is a hyper-local affair and the dynamics in any particular city or neighborhood are unique. Please reach out anytime to discuss how the data will inform your goals, whether you are considering buying or selling.
Mortgage news
Rates and insurance and home, oh my!
By Evelyn Freitas | VP of Mortgage Lending at Guaranteed Rate NMLS 247578
Over the past two months, mortgage rates have continued to fluctuate, impacting affordability in the real estate market. Reduced yet persistent inflation led to increasing rates in April and then a decrease throughout May, dropping below 7% for the first time in over a month. These changes affect home affordability, refinancing options, and overall buyer confidence. For potential homebuyers, staying informed about these shifts is crucial. It’s advisable to consult with a mortgage broker who follows the market so you can lock in favorable rates at the right time. As rates continue to evolve, having a proactive strategy helps buyers navigate these changes and make well-informed decisions.
In addition to volatile interest rates, California homeowners are currently facing challenges in securing homeowners’ insurance due to the state’s unique landscape and natural risks. More frequent wildfires and other natural disasters have led many insurers to raise premiums or cease offering coverage in high-risk areas. The California FAIR Plan is a last-resort option providing basic fire insurance for properties that cannot secure traditional coverage in the current insurance environment.
Working with an insurance agent who has access to multiple carriers can help you identify available options and tailor a policy that meets your needs. Implementing fire-resistant measures can make your home more insurable and potentially lower premiums as well. For homebuyers, determining the insurability of the property before making an offer is crucial in order to avoid surprises or delays during escrow. By staying informed, working with knowledgeable professionals, and taking proactive steps, you can secure the protection you and your home require.
If you have any questions or would like further assistance, please reach out to me – I’m here to help! I can be contacted at Evelyn.Freitas@rate.com or by phone at 510-501-8473.
The Home Factor
mid-year update
Team Feature
The Home Factor has not had much downtime this year! Navigating the switch to a new brokerage and new office space at the beginning of 2024, while maintaining a busy schedule of listing appointments, buyer appointments, and preparing homes for the market, meant that days off have been at a minimum. We’re proud of what we’ve accomplished so far this year, and we’re tremendously grateful to our clients for their trust.
WE WORK BY REFERRAL! You’re well aware by now that at The Home Factor we operate almost exclusively by referral. In fact, more than 70% of our closed business is by referral. If you know anyone in need of real estate help, please connect us and we will treat them like family.
Here’s a round-up of our sales year-to-date:
Seller Representations:
91 Rockport Ct, Richmond
3416 Maricopa Ave, Richmond
1695-1697 Hopkins St, Berkeley
1201 Brickyard Way Apt 208, Pt. Richmond
715 Jackson St, Albany
1106 Colusa Ave, Berkleley
112 Toyon Ct, Hercules - Pending
2117 Spaulding Ave, Berkeley - Pending
4044 Midvale, Oakland - Available
Buyer Representations:
5709 Sacramento Ave, Richmond
1300 Quarrry Ct, Apt 416, Pt. Richmond
1099 Sterling Ave, Berkeley
178 Marina Lakes Dr, Richmond
1001A 46th Street #506, Oakland
spotlight
the home factor recommends
By Denitsa Shopova
There’s a seasonality to the east bay real estate market. The Spring market is generally the busiest time of the year, and peak inventory tends to hit right around Memorial Day. June continues to bring inventory, but as we get into July, and as prospective buyers lean into summer vacations, there tends to be fewer homes available until the market picks up steam again in late August.
Sometimes the summer lull can be trying for our favorite vendors, and they aren’t booked quite as tighly as during Spring and Fall. We’d like them to stay busy and so we’re recommending a few people for your Summer chores.
Need handymen help in your home or yard? Angel Mendoza is our favorite! We can’t recommend him highly enough. Call Angel at (510) 478-5729.
How about getting your windows cleaned? Look no further than WeLoveWashingWindows.com
Industry news
myths about the realtor® Settlement
By Declan Spring
The real estate industry is on the verge of change. New rules around commissions are set to take effect in late August. The media has not reported accurately on the proposed changes.
There’s a false claim that by eliminating buyer agent commissions, property will become more affordable. It’s an absurd claim. The reality is that compromising buyer agents in their ability to earn a living will be detrimental to consumers.
Declan is gearing up to bring this topic to his podcast audience. “Let’s Talk, with Declan Spring” will be making its video debut in August to coincide with this extraordinary industry moment. Stay tuned.......
Did you know that we have a YouTube Channel? We’re creating content as quickly as possible. Please subscribe! It’s a fun way to get a peek behind the scenes at the work we do to prepare homes for the market.
www.youtube.com/@thehomefactor
The Home Factor • DRE#01398898 • Powered by Keller Willams • 2089 Rose St, Berkeley, CA 94709 • Declan@TheHomeFactor.com (415) 446-8591